Question : 51) Resources sacrificed activities undertaken to support individual services which : 1196248

51) Resources sacrificed on activities undertaken to support individual services are which of the following? 51) ______ A) batch-level costs B) product-sustaining costs C) product-sustaining (service-sustaining) costs D) input unit-level costs E) facility-sustaining costs

52) A division of a company manufactures two products, which are in high demand in the defence industry.

Product A is stamped out in a machine press, at the rate of 10,000 per hour.

Product B is identical to product A, with the exception that it is made from thicker steel, and requires the machine press to be recalibrated.

Product A is produced on the day shift and product B is produced on the afternoon shift, allowing set up changes to be done between shifts.

Required: In this case, set up hours are related to which of the following? 52) ______ A) units of output B) the number of customers C) batches of output D) labour hours E) machine hours

53) Resources sacrificed on activities that cannot be traced to individual products or services, but which support the organization as a whole are which of the following? 53) ______ A) batch-level costs B) product-sustaining costs C) output unit-level costs D) facility-sustaining costs E) service-sustaining costs

54) The costs of hiring building security would be which of the following? 54) ______ A) facility-sustaining costs B) product-sustaining costs C) output unit-level costs D) general-level costs E) building-sustaining costs

55) Which of the following is TRUE concerning selecting a cost-allocation base in an ABC system? 55) ______ A) Costs may need to be allocated to services first, before the costs of services can be allocated to activities. B) All costs can be directly identified with a specific activity. C) The allocation base chosen may be constrained by the availability of reliable data. D) Output unit-level costs cannot be related to a cost-allocation base. E) Cost-allocation bases are not relevant in defining the number of activity pools.

56) The previous controller had always estimated the indirect costs at 25% of billings.

What indirect costs were accumulated for each major client for the month under this assumption? See Question 28 for additional information to solve this question. 56) ______ A) School Board$141,420.00City Gov’t$3,039.50 B) $1,762.63$141,420.00 C)               $7,050.50              $254,052.00 D)               $63,535.00              $1,762.63 E)               $1,762.63              $63,535.00

Use the information below to answer the following question(s).

Fran Ferry Company had the following activities, traceable costs, and physical flow of driver units:

Traceable Physical Flow

Activities                   of Costs          Driver Units

Account inquiry (hours) $ 200,0005,000hours

Account billing (lines)140,000 2,000,000lines

Account verification (accounts) 75,000 20,000accounts

Correspondence (letters)25,000

2,000letters

The above activities are used by departments A and B as follows:

AB

Account inquiry (hours)1,0002,000

Account billing (lines)200,000 100,000

Account verification (accounts) 5,0004,000

Correspondence (letters)500800

57) How much of the account inquiry cost will be assigned to Department A? 57) ______ A) $40,000 B) $140,000 C) $80,000 D) $200,000 E) $100,000

58) How much of the account billing cost will be assigned to Department B? 58) ______ A) $14000 B) $7,000 C) $140,000 D) $100,000 E) $120,000

59) Bill Cobb Corporation had the following activities, traceable costs, and physical flow of driver units:

Traceable Physical Flow

Activities                   of Costs          Driver Units

Account inquiry (hours) $ 400,0005,000hours

Account billing (lines)280,0002,000,000

Account verification (accounts) 150,00020,000

Correspondence (letters)50,0002,000

The above activities are used by departments X and Y as follows:

XY

Account inquiry (hours)500hours800hours

Account billing (lines)250,000lines 200,000lines

Account verification (accounts) 2,000accounts 1,000accounts

Correspondence (letters)200letters 1,000letters

How much of the correspondence cost will be assigned to Department X? 59) ______ A) $20,000 B) $5,000 C) $10,000 D) $15,000 E) $25,000

60) ABC costing is characterized by all of the following EXCEPT 60) ______ A) identification of both variable and fixed costs in the long run. B) a focus on longer-run decisions. C) using the cost hierarchy to allocate costs to products. D) identifying all resources used by products regardless of how individual costs behave in the short run. E) identification of all costs used by products.

61) Activity-based management describes management decisions which use activity-based costing information to do all of the following EXCEPT